The Strategist

Saudi Arabia changes Saudi Aramco CEO before IPO

09/03/2019 - 07:48

The decision to appoint a new Chairman of the Board of Directors to replace the Saudi Arabian Minister of Energy, as noted, was made in order to "avoid conflicts of interest" before preparing for the initial public offering of Saudi Aramco.

World Economic Forum
World Economic Forum
The change of leadership at Saudi Aramco also strengthens the position of Crown Prince of Saudi Arabia, Mohammed bin Salman. Many witness that Yasir Al-Rumayyan is the main economic adviser to the heir to the Riyadh throne.

The recent steps of the Saudi leadership also resulted in a decrease in the influence of the current Minister of Energy of Saudi Arabia.

Khalid al-Falih has served as Chief Executive Officer and Chairman of the Board of Directors of Saudi Aramco since 2009. In 2015, Amin Nasser took over as CEO of the company. Following the current appointment, the Saudi Minister of Energy has been removed from Saudi Aramco’s leadership.

At the same time, a few days earlier, the country's authorities announced a decision to create a new Ministry of Industry and Mineral Resources, thus depriving the Ministry of Energy of the country of some of the powers in the raw materials sector of Saudi Arabia.